ICMA advances CDM to repo and outright bonds
05 July 2021 UK
Image: Влада Яковенко/adobe.stock.com
The International Capital Markets Association (ICMA) has confirmed that it is working with its technology partner REGnosys, along with the International Securities Lending Association (ISLA) and their respective association members, to extend the Common Domain Model (CDM) for repo transactions and outright bonds.
This comes several days after ISLA said that it has established a ‘minimum viable product’ for securities lending trades and has contributed this into the CDM.
The CDM provides a common data representation of transaction events, offering a common template or set of fields that the industry will use to share trade information and other key data. This is a standardised, machine-readable blueprint for how financial products can be managed across the trade lifecycle.
The ICMA says that its member firms have supported this cross-industry initiative by contributing test data and providing advice through the Association’s CDM Steering Committee.
The working group has concentrated initially on developing a CDM for a standard fixed-term repo using a single security type (ISIN) as collateral. The initial development phase focused on modelling execution, clearing and settlement stages of the transaction lifecycle.
It has also focused on the mapping and capture of FIX 4.4 messaging to the CDM.
This work has been extended beyond repo to an outright bond transaction, enabling the essential data fields required for bond settlement to be represented through the CDM.
ICMA is developing the CDM to provide an unambiguous, digital representation of repo and bond transactions in the form of code. It builds on legal definitions from the Global Master Repurchase Agreement (GMRA) and the ERCC Guide to Best Practice in the European Repo Market.
This comes several days after ISLA said that it has established a ‘minimum viable product’ for securities lending trades and has contributed this into the CDM.
The CDM provides a common data representation of transaction events, offering a common template or set of fields that the industry will use to share trade information and other key data. This is a standardised, machine-readable blueprint for how financial products can be managed across the trade lifecycle.
The ICMA says that its member firms have supported this cross-industry initiative by contributing test data and providing advice through the Association’s CDM Steering Committee.
The working group has concentrated initially on developing a CDM for a standard fixed-term repo using a single security type (ISIN) as collateral. The initial development phase focused on modelling execution, clearing and settlement stages of the transaction lifecycle.
It has also focused on the mapping and capture of FIX 4.4 messaging to the CDM.
This work has been extended beyond repo to an outright bond transaction, enabling the essential data fields required for bond settlement to be represented through the CDM.
ICMA is developing the CDM to provide an unambiguous, digital representation of repo and bond transactions in the form of code. It builds on legal definitions from the Global Master Repurchase Agreement (GMRA) and the ERCC Guide to Best Practice in the European Repo Market.
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